Lessons to the DSU from the US-China Trade War and Proposal of Reforms

Abstract

In the context of globalization, people pay more attention to the role of international economic organizations in managing transnational trade relations. The US-China trade war has critically impacted the global economy and significantly influenced the international trade pattern. The Dispute Settlement Understanding (DSU), an essential section under the World Trade Organization(WTO), failed to function during the US-China trade war. Using the US-China trade war as the entry point to review the US-China trade relations under the WTO, this paper first evaluates the deficiencies of the DSU. Then it raises some reform suggestions in relatively practical aspects. The main intention of reforms is to provide a more concise and complete negotiation platform for solving transnational trade disputes.